Equivalent Units and Product Cost AssignmentWeighted Average Method

In its first month of operations (May 2016), Allred Company's Department 1 incurred charges of $144,000 for direct materials (4,500 units), $77,400 for direct labor, and $27,000 for manufacturing overhead. At month end, 4,250 units had been finished and transferred out. Those remaining were finished with respect to material but only 40% finished with respect to conversion.

Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion occurs evenly, compute the following:

A The equivalent units for material and conversion.

B The cost per equivalent unit for material and conversion.

C The total cost assigned to the units transferred out.

D The total cost assigned to the ending inventory.

E Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.

Round average cost per equivalent unit to two decimal places, if applicable.

Round other answers to the nearest whole number, when appropriate.

Equivalent Units and Product Cost Assignment-Weighted Average Method In its first month of operations (May 2016), Allred Company's Department 1 incurred charges of $144,000 for direct materials (4,500 units),$77.400 for direct labor, and $27,000 for manufacturing overhead. At month end, 4,250 units had been finished and transferred out. Those remaining were finished with respect to material but only 40% finished with respect to conversion. Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion occurs evenly, compute the following a. The equivalent units for material and conversion. b. The cost per equivalent unit for material and conversion C. The total cost assigned to the units transferred out. d. The total cost assigned to the ending inventory e. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for Round average cost per equivalent unit to two decimal places, if applicable Round other answers to the nearest whole number, when appropriate Allred Company Department 1 Flow of Units and Equivalent Units Calculation Equivalent Units % Work Done % Work Direct Materials Conversion Costs done Complete/Transferred Ending Inventory Total Product Cost Report Direct Materials Conversion Costs eginning Inventory Current Total Costs tO Account For Total Equivalent Units Average cost / Equivalent unit b. Complete Transferred: Direct Materials Conversion costs Cost of Goods Manufactured $ C. Ending Inventory Direct Materials Conversion costs Cost of Ending Inventory d. Total Costs Allocated